Assemblyman Al Muratsuchi, D-Torrance, has promoted the bill as ensuring California can become a hub for the burgeoning private space industry, led by firms like Hawthorne-based SpaceX. Reviving southern California's once-mighty aerospace industry has been a recurring theme for Muratuschi, who has also touted the potential of unmanned aerial vehicles, or drones.

The bill, Assembly Bill 777, passed the Senate easily earlier this month. While Assemblyman Phil Ting, D-San Francisco, had previously warned about favoring a specific industry with a tax break that could prove difficult to erase, the legislation garnered more than enough support on Thursday to advance.